What is best current option for gaming HTPC build?

The current G35 motherboards appear to work well for HTPC use because they utilize onboard video/audio with an HDMI option (i.e. best current 8 channel digital audio option).

The problem for gamers is that these integrated video solutions are not powerful enough for any serious gaming.

The question is what is the best current solution to obtain quality digital sound out (via HDMI preferably or possibly toslink) while not having to compromise too heavily on video processing? In other words what is the best solution that also offers the use of a discrete video card?

Thanks Ben, you are correct I meant the G35 based boards - they appear to be the best solution out there for digital audio (via HDMI). This solution apparently doesn't work with the addition of a discrete video card since (if I understand the limitation correctly) audio-only via HDMI isn't supported. So, it's video/audio or nothing...

Much of this I did in fact read in the thread you mentioned Ben. That thread focuses on HTPC use and not so much on HTPC gaming.

I did look through the gaming forum... unfortunately not a great help.

I'm thinking maybe the P35 board might work with a Zotac 8800GT (HDMI/SPDIF passthrough) but I suspect from what I have read that this is not an improvement over DVI out + SPDIF out... it simply is passed over a single cable. What I'm really looking for is to take full advantage of the HDMI audio out on the P35 boards but without having to rely on the integrated graphics.

I'll keep looking!

It looks to me that the audio input (to the 9800GX2 card) is also two-pin SPDIF (just like the 8800GT uses). I presume the resulting HDMI output would result in the same audio quality as the 8800GT... albeit with much improved video performance!

Thanks for the heads up on this card, unfortunately I don't need extreme gaming performance enough to justify the cost of the GX2. It doesn't look like the price premium affords an improvement in audio output quality either.

I'm interested... can you be a little more specific as to which you think might do the trick?